Stratasys higher on CS upgrade; valuation gap with 3D Systems in focus

|About: 3D Systems Corp. (DDD)|By:, SA News Editor

In tandem with downgrading 3D Systems (DDD -4%) to Neutral, Credit Suisse's Jonathan Shaffer has upgraded Stratasys (SSYS +1.4%) to Outperform, while citing the valuation gap between the 3D printer vendors.

Shaffer notes that while 3D Systems and Stratasys have largely traded at similar multiples since '09, the former now sports a major premium relative to the latter. He considers this unjustified given the companies have similar scale, and Stratasys (no doubt courtesy of its MakerBot unit) is better-positioned in the consumer/prosumer segment.

3D Systems currently sells for 13.3x a 2014 revenue consensus of $669M, and Stratasys goes for 8.9x a 2014 revenue consensus of $670M.